Why 86% of Companies Can't Prove Their Supply Chain Actually Works

Jan de Vries · 2026-09-18

### The Uncomfortable Truth About Supply Chain Safeguards A new study just dropped, and it's not pretty. Only 14% of companies can actually demonstrate that their responsible sourcing programs are reducing risks or improving outcomes. That means a whopping 86% are basically flying blind. Think about that for a second. Most companies talk a big game about sustainability, ethical sourcing, and supply chain transparency. But when you ask them to prove it's working? Silence. ### What's Really Going On Here So why is this happening? It's not that companies don't care. Most do. The problem is deeper. - **Data fragmentation**: Supply chain data lives in a dozen different systems, none of which talk to each other. - **Lack of benchmarks**: Without clear metrics, it's hard to know if you're actually improving anything. - **Short-term thinking**: Quarterly earnings pressure makes it tough to invest in long-term safeguards. - **Complexity at scale**: When your supply chain spans 20 countries, tracking impact gets messy fast. The result? A lot of well-intentioned programs that look good on paper but don't move the needle. ### Why This Matters More Than Ever Regulators are waking up. The EU's Corporate Sustainability Due Diligence Directive is coming, and it's going to force companies to show their work. No more vague promises. No more glossy reports that say nothing. > "If you can't measure it, you can't manage it. And if you can't manage it, you can't claim it." — Anonymous supply chain executive For European startups, this is both a threat and an opportunity. The threat? Compliance costs and complexity. The opportunity? Building tools that actually solve this problem. ### The Startup Opportunity Here's where it gets interesting. The EU Inc proposal—which aims to simplify incorporation across Europe—could make it easier for startups to scale solutions that address exactly this gap. Imagine a startup that provides real-time supply chain monitoring with verifiable impact metrics. Right now, that's a fragmented market. But with EU Inc reducing friction across borders, a startup could potentially serve customers in 27 countries without setting up 27 legal entities. That's a game-changer. ### What Companies Should Do Now If you're running a company and you're in that 86%, don't panic. But do start moving. - **Audit your current metrics**: What are you actually measuring? Is it meaningful? - **Talk to your suppliers**: They often have data you don't. - **Invest in traceability**: Blockchain isn't a buzzword here—it's a tool. - **Start small**: Pick one product line and get it right before scaling. The companies that figure this out first will have a massive competitive advantage. The rest? They'll be playing catch-up when regulators come knocking. ### The Bottom Line 14% is a terrible number. But it's also a huge opportunity for those willing to do the work. The tools exist. The demand is there. What's missing is the will to actually measure what matters. So here's the question: Are you in the 14%? Or are you still pretending?